Fisker files for bankruptcy protection, the second electric vehicle maker to do so in the past year (2024)



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Electric vehicle maker Fisker filed for Chapter 11 bankruptcy protection, the second electric startup to do so in the last year as even industry leaders struggle to lure more buyers beyond the early adapters of the technology.

Fisker Group Inc. said in a filing with the U.S. Bankruptcy Court in Delaware that its estimated assets are between $500 million and $1 billion. It estimated liabilities are between $100 million and $500 million, with between 200 and 999 creditors.

“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” the company said in a prepared statement late Monday. “After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”

The 7-year-old electric car company was founded by designer Henrik Fisker, who has been its chairman and CEO. He designed the company’s 2022 Ocean all electric SUV as well as the luxury plug-in hybrid Karma that was launched in 2011. Fisker is also known for leading the development of the BMW Z8 sports car.


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It is the second automotive venture led by Henrik Fisker to fail.

Fisker, based in Manhattan Beach, California, and other startups like Lordstown Motors Corp., sought to take on industry leaders like Tesla, and big automakers in Detroit, which have entered the market aggressively.

However, EV sales have slowed as manufacturers have attempted to push electric vehicles into the mainstream. Those sales have been curbed both by a lack of infrastructure, as well as rising inflation that have made taking on car loans more expensive.

Electric vehicles grew only 3.3% to nearly 270,000 during the first three months of this year, far below the 47% growth that fueled record sales and a 7.6% market share last year, according to J.D. Power. The slowdown, led by Tesla, confirms automakers’ fears that they moved too quickly to pursue EV buyers. The EV share of total U.S. sales fell to 7.15% in the first quarter.

That has led to huge price cuts and job cuts at leading companies like Tesla.

Another electric startup, Rivian, said this year that it was pausing construction of its $5 billion manufacturing plant in Georgia to speed production and save money.

Lordstown sought bankruptcy protection last summer, as it dealt with funding difficulties.

The Fisker bankruptcy filing comes as the Biden administration pushes to dramatically raise EV sales as part of President Joe Biden’s agenda to slow climate change. Republicans led by presumptive nominee Donald Trump are turning EVs into a campaign issue, deriding Biden’s efforts to promote electric vehicles as a “radical plan” that is unfair for consumers and amounts to government overreach.

Auto companies are investing billions in factories and battery technology to speed up the switch to EVs to cut pollution, fight climate change — and meet an Environmental Protection Agency requirement that 56% of all new vehicle sales be electric by 2032.

Henrik Fisker’s first attempt to start an electric car company also ended in 2013. That 2013 collapse culminated a long downward spiral that began after Fisker received a $529 million loan commitment from the U.S. Department of Energy.

It was later learned that the U.S. Energy Department did not realize for four months that the flailing company, called Fisker Automotive Inc., had missed a crucial production target that was required as part of a half-billion dollar government loan. The mistake allowed Fisker to obtain an additional $32 million in government funding before the loan was suspended in June 2011.

Fisker Inc. and other U.S. subsidiaries, along with subsidiaries outside the U.S., are not currently included in the bankruptcy filing. Fisker says that it’s in advanced talks with financial stakeholders about debtor-in-possession financing and selling its assets.


AP Writer Matthew Daly in Washington, D.C., contributed to this report

Fisker files for bankruptcy protection, the second electric vehicle maker to do so in the past year (2024)


Fisker files for bankruptcy protection, the second electric vehicle maker to do so in the past year? ›

Get Fully Charged. Fisker filed for Chapter 11 bankruptcy protection last week, just about a year after its debut EV, the Ocean

The Fisker Ocean is a battery electric mid-size crossover SUV manufactured and marketed by Fisker, released in 2023. It was the first of three in a lineup of mass-market all-electric vehicles designed by Henrik Fisker. It was offered in both front and all-wheel drive. Fisker Ocean. › wiki › Fisker_Ocean
SUV, hit the road. The company reportedly struggled with a problematic product and mismanagement. The downfall leaves the thousands of people who have bought Oceans wondering what happens next ...

What happened to Fisker electric cars? ›

After months of teetering on the edge of collapse, Fisker has finally filed for bankruptcy. The American electric car start-up led by car designer Henrik Fisker stopped production of its only model, the Ocean, in March when it revealed that extra funding would be required to continue operations.

Who owns Fisker now? ›

Fisker Automotive
Company typePrivate corporation
FateDeclared bankruptcy in November 2013; assets bought by Wanxiang in February 2014 as foundation of Karma Automotive; Henrik Fisker subsequently founded Fisker Inc in 2016.
SuccessorKarma Automotive Fisker Inc.
HeadquartersAnaheim, California, U.S.
7 more rows

Who builds Fisker? ›

The Ocean is engineered and designed by a new company called Fisker Inc., but the car itself is assembled by Magna International, a component supplier and contract manufacturer in Austria that also produces the Jaguar I-Pace, Mercedes G-Class, and Toyota Supra.

How many vehicles has Fisker produced? ›

Fisker Ocean production was 4,789 units in Q4 2023, and vehicles delivered to customers totaled 3,818. For full year 2023, 10,193 Fisker Oceans were produced, and 4,929 vehicles were delivered.

Is Fisker in trouble? ›

Update: Fisker has since filed for bankruptcy, after last-ditch efforts to rescue the company failed. An autonomous pod. A solid-state battery-powered sports car.

Does Fisker have a future? ›

While Fisker's future is murky at best in the current, there are paths forward. The company is undoubtedly selling the 2023 Ocean inventory at a loss, and a return to pre-drop pricing for 2024 models is unlikely to drive customer demand.

Why did Tesla sue Fisker? ›

Tesla got rid of Fisker's work and started over when it learned that Fisker was launching a competing company. Tesla then hit Fisker with a lawsuit, claiming he stole confidential information, but Fisker won the case in arbitration. He went on to launch Fisker Automotive before filing for bankruptcy in 2013.

Can a Fisker survive? ›

In its earnings release for the fourth quarter, Fisker said there is substantial doubt about its ability to continue as a going concern. “I would not be the least bit shocked if Fisker is bankrupt before the end of 2024,” said Sam Abuelsamid, principal research analyst at Guidehouse Insights.

Why did Fisker fail? ›

Fisker Failed Because It Botched Virtually Every Task It Took On. Rather than take ownership of its mistakes, the startup blamed its bankruptcy on headwinds in the electric-vehicle market. The Fisker Ocean electric sport utility vehicle.

Is Fisker a German company? ›

Fisker Inc. is an American automotive company founded by Danish automotive designer Henrik Fisker and his wife Geeta Gupta-Fisker.

Is Fisker a good company? ›

Employees rate Fisker 2.4 out of 5 stars based on 186 anonymous reviews on Glassdoor.

Where is Fisker headquarters? ›

Did Nissan buy Fisker? ›

Nissan was reportedly in negotiations to give Fisker $400 million, but that apparently fell through, so it looked like bankruptcy was the only option. Don't you worry, though, Fisker is totally back, baby!

How much does a Fisker car cost? ›

(Photo by Fisker Inc.) In addition, The 2023 Ultra trim will be priced at $34,999 MSRP, reduced from the current $52,999; and the 2023 Sport will be priced at $24,999 MSRP, reduced from the current $38,999.

How many people work at Fisker? ›

Fisker reported more than 1,300 employees as of the end of September 2023, meaning the cut could affect close to 200 people. The company's share price plunged 35% in after-hours trading. Fisker said Thursday that it finished 2023 with $396 million in cash, though $70 million of that is restricted.

Why did Fisker car fail? ›

That company, Fisker Automotive, got a hybrid sports car into the hands of a few thousand customers. But the company buckled soon after as it faced complaints about quality, the failure of its battery supplier, and a hurricane that literally sunk a ship full of vehicles.

What is happening to Fisker today? ›

Electric car maker Fisker has finally thrown in the towel and filed for bankruptcy, bringing the dream of its founder Henrik Fisker to an end.

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